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Manufacturing Cost Rise in Georgia

In February 2016 the Producer Price Index (PPI) for Industrial Products increased 1.1 percent over January 2016.

The index rose 3.9 percent compared to February 2015 and 25.5 percent over the 2010 average.

In February producer prices registered a 1.0 percent increase for manufacturing, producing an upward effect of 0.82 percentage points on the overall monthly index change.

Prices were higher for manufacture of basic metals and fabricated metal products (5.2 percent) and manufacture of food products, beverages and tobacco products (0.6 percent). Prices also increased for mining and quarrying (4.9 percent) and supply of electricity, gas and water (0.8 percent).

Development of the annual PPI rate was mainly driven by price changes for the following sections:  Supply of electricity, gas and water: prices for the section increased 19.4 percent and contributed 2.51 percentage points to the overall index change;  Manufacturing posted a 1.8 percent price increase and the section contributed 1.48 percentage points to the overall annual index change.

Prices rose for the following subsections: manufacture of food products, beverages and tobacco products (4.0 percent) and manufacture of chemical products (25.5 percent). Prices edged down for manufacture of basic metals and fabricated metal products (-14.3 percent).